Life after Brexit: where to place the currency?
On June 23, a historic referendum took place, during which residents of Great Britain spoke out against preserving the United Kingdom as part of the European Union. 51.9% of Britons were in favor of the country's withdrawal from the EU, and 48.1% of citizens voted against. Thus, despite the data of numerous exit polls, reflecting the predominance of supporters of European integration, Brexit did take place. The news came as a complete surprise for financial markets, triggering a powerful wave of sales of risky assets. The currency went as well: the pound sterling lost about 6% at the moment, the euro fell to the dollar a little more than 4.5%.
Winning a referendum of supporters of a British exit from the EU threatens with a mass of economic and political consequences for both the United Kingdom and its key partners. According to experts, for the European Union, Brexit not only became an image failure, but in the future could lead to the collapse of the EU. The unity of the United Kingdom itself is under threat now - residents of Scotland and Northern Ireland want EU membership. In addition, the European Union has already declared that it is not ready to make concessions to the UK, and the possible imposition of restrictions on British goods on the EU markets could have a painful effect on the UK economy.
If the situation develops according to a negative scenario in the long term, the European currency may be under pressure, and dollar deposits will look more attractive. However, for many Russians, the question remains where to invest the available currency, given the downward trend in deposit rates. After all, if a year ago, the average level of interest rates on foreign currency deposits for a year was about 5-6% per annum, at the present time it is only 2-3%. For demand deposits, the rate has dropped comparable and is less than 1%. And, according to some expert estimates, this trend will continue.
To date, there are several alternatives to foreign currency deposits, which make it possible to obtain an attractive return, subject to return on investment. For example, the acquisition of Eurobonds can bring a profit of up to 8-10% per annum in foreign currency. Eurobonds (also called eurobonds) are issued by large companies or the state to raise capital in a currency, for example, in US dollars. Coupon payments (similar to% on deposit) are usually made twice a year, and the risk of losing money is extremely low when investing in securities of reliable companies or states.
To purchase Eurobonds, you need to open and replenish a brokerage account, and then submit an order to purchase the instrument of interest - for example, Promsvyazbank Eurobonds with a coupon rate of 8.28%, or government bonds (issued by the Ministry of Finance of the Russian Federation) at a rate of 2.21%. You can submit an order either through a trading terminal or by phone to a trader. In order to diversify experienced investors, as a rule, they hold high-quality Eurobonds in their long-term portfolios along with the purchase of risky assets (such as stocks, for example).
Those who do not want to understand the variety of Eurobond issues and buy them independently should consider the currency investment in a product with capital protection. This, unlike Eurobonds, is a ready-made investment decision, within which all the work is done by professionals. They themselves determine in what instruments and for how long it is best to invest capital to achieve their financial goals. If the idea of ​​analysts works, then the investor can receive substantial income in foreign currency. Investments are released on a previously known date. You can invest in a finished product with capital protection by contacting the nearest Otkritie Broker office or leaving a request on the website.
Data of the Bank of Russia, the Basic level of profitability of deposits: www.cbr.ru/analytics/?PrtId=budv
The yield to maturity was calculated on the part of securities at closing prices as of 07/07/2016 (at 10.53 Moscow time) at the Moscow Exchange. On this date, the yield of PJSC Promsvyazbank Eurobonds (PSB Fin-9) to redeem on July 30, 2021 was 8.28% per annum in US dollars (the value of the bond was 109% of par value), the Ministry of Finance of the Russian Federation (RUS-30) to redeem 03/31/2030 - 2.21% (value of the bond - 122.63,% of the nominal value), PJSC “Ural Bank for Reconstruction and Development” (UBRDcapLtd) to maturity on December 27, 2018 - 10.81% (value of the bond - 102.5, % of nominal). The results of the yield of Eurobonds in the past do not determine future income.
Otkritie Broker JSC: license of a professional participant in the securities market for brokerage activities No. 045-06097-100000, issued by the Federal Securities Commission of Russia on June 28, 2002 (without expiration date).
Winning a referendum of supporters of a British exit from the EU threatens with a mass of economic and political consequences for both the United Kingdom and its key partners. According to experts, for the European Union, Brexit not only became an image failure, but in the future could lead to the collapse of the EU. The unity of the United Kingdom itself is under threat now - residents of Scotland and Northern Ireland want EU membership. In addition, the European Union has already declared that it is not ready to make concessions to the UK, and the possible imposition of restrictions on British goods on the EU markets could have a painful effect on the UK economy.
If the situation develops according to a negative scenario in the long term, the European currency may be under pressure, and dollar deposits will look more attractive. However, for many Russians, the question remains where to invest the available currency, given the downward trend in deposit rates. After all, if a year ago, the average level of interest rates on foreign currency deposits for a year was about 5-6% per annum, at the present time it is only 2-3%. For demand deposits, the rate has dropped comparable and is less than 1%. And, according to some expert estimates, this trend will continue.
To date, there are several alternatives to foreign currency deposits, which make it possible to obtain an attractive return, subject to return on investment. For example, the acquisition of Eurobonds can bring a profit of up to 8-10% per annum in foreign currency. Eurobonds (also called eurobonds) are issued by large companies or the state to raise capital in a currency, for example, in US dollars. Coupon payments (similar to% on deposit) are usually made twice a year, and the risk of losing money is extremely low when investing in securities of reliable companies or states.
To purchase Eurobonds, you need to open and replenish a brokerage account, and then submit an order to purchase the instrument of interest - for example, Promsvyazbank Eurobonds with a coupon rate of 8.28%, or government bonds (issued by the Ministry of Finance of the Russian Federation) at a rate of 2.21%. You can submit an order either through a trading terminal or by phone to a trader. In order to diversify experienced investors, as a rule, they hold high-quality Eurobonds in their long-term portfolios along with the purchase of risky assets (such as stocks, for example).
Those who do not want to understand the variety of Eurobond issues and buy them independently should consider the currency investment in a product with capital protection. This, unlike Eurobonds, is a ready-made investment decision, within which all the work is done by professionals. They themselves determine in what instruments and for how long it is best to invest capital to achieve their financial goals. If the idea of ​​analysts works, then the investor can receive substantial income in foreign currency. Investments are released on a previously known date. You can invest in a finished product with capital protection by contacting the nearest Otkritie Broker office or leaving a request on the website.
Data of the Bank of Russia, the Basic level of profitability of deposits: www.cbr.ru/analytics/?PrtId=budv
The yield to maturity was calculated on the part of securities at closing prices as of 07/07/2016 (at 10.53 Moscow time) at the Moscow Exchange. On this date, the yield of PJSC Promsvyazbank Eurobonds (PSB Fin-9) to redeem on July 30, 2021 was 8.28% per annum in US dollars (the value of the bond was 109% of par value), the Ministry of Finance of the Russian Federation (RUS-30) to redeem 03/31/2030 - 2.21% (value of the bond - 122.63,% of the nominal value), PJSC “Ural Bank for Reconstruction and Development” (UBRDcapLtd) to maturity on December 27, 2018 - 10.81% (value of the bond - 102.5, % of nominal). The results of the yield of Eurobonds in the past do not determine future income.
Otkritie Broker JSC: license of a professional participant in the securities market for brokerage activities No. 045-06097-100000, issued by the Federal Securities Commission of Russia on June 28, 2002 (without expiration date).
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Source: https://habr.com/ru/post/396219/
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